While it may not be at the forefront of your mind when managing your day-to-day finances, a pension is one of the most important investments you can make throughout your working life.
Accumulating a healthy pension fund could allow you to live comfortably in retirement and carry out all the plans you’ve been dreaming of for years.
However, a recent study reported by IFA Magazine has revealed that nearly half of UK adults are worried about running out of money in retirement.
Yet, it could be that some people have retirement savings they’re unaware of. That’s why National Pension Tracing Day, which falls on 27 October, was founded – to encourage you to track down and claim “lost” pensions.
Read on to find out how tracing lost pensions could boost your retirement savings, and discover three helpful tips for finding pension pots you might have forgotten about.
It’s surprisingly easy to lose a pension
Forgetting about pension funds worth potentially thousands of pounds may seem unlikely, but you might be surprised by how common this is.
According to research published by People Management, at least 4.8 million pension pots are considered to be “lost” in the UK in 2023. What’s more, a staggering £50.85 billion in pension savings is at risk of being misplaced in forgotten accounts.
There could be many reasons why you might lose a pension. For example, if you’ve had different employers throughout your career, there’s a good chance you’ve paid into multiple pension pots, which could be hard to keep track of.
Equally, if you’ve moved home and failed to update your previous pension providers, you might have missed correspondence from them, and they may now be unable to contact you. As a result, you could have lost sight of these funds.
The average lost pension could be worth almost ÂŁ10,000
As the cost of living crisis continues, you might find it harder to save as much into your retirement fund as you’d like. If you’re already enjoying retirement, your pension may not be stretching as far as you expected it to.
So, tracing lost pensions could be a relatively straightforward, yet highly beneficial way to boost your retirement savings.
Indeed, figures published by Aviva reveal that the average lost pension pot in the UK is worth around ÂŁ9,500.
Remember that any pension pots you’ve forgotten about and neglected may have continued to generate compound interest and investment returns. So, your misplaced funds may be worth considerably more than you originally contributed.
Additionally, by tracing any lost pension pots, you can regain control of them. For example, you might choose to move your savings to a new scheme that has more favourable charges and a level of risk that is more aligned with your retirement goals.
3 helpful tips for tracking down lost pensions and boosting your retirement fund
According to research published by FTAdviser, 79% of UK adults don’t know how to track down lost pensions.
So, here are three simple tips for checking to see if you have any misplaced pension funds that could boost your retirement savings:
1. Locate relevant documentation
A good place to start is writing a list of all your previous employers to date.
Next, sort through your old paperwork and emails to see if you can track down the details of a pension for each workplace – most pension providers send annual statements to members of their schemes.
You might also have paid into personal pension schemes not associated with a particular employer.
If there are any gaps in your pension history, don’t panic. There are several ways to trace your missing pensions.
2. Contact previous employers and pension providers
If you’ve managed to find the details of your previous workplace or personal pensions, the easiest way to reclaim your old accounts is to contact the providers directly.
It’s usually helpful to have the following pieces of information to hand:
- Personal reference numbers
- The dates of your employment
- Your National Insurance number
If you were unable to find the details of pension plans for some of your former workplaces, it’s worth contacting your previous employers. They may be able to provide the above details, which you can then use to follow up with the pension provider.
3. Use the free government pension tracing service
The government’s free online Pension Tracing Service could help you track down misplaced pension savings if you’ve been unable to find the relevant information to do so yourself.
This service can’t provide details of your pension accounts, such as how much they are worth, but it can provide you with contact details for any providers you have pensions with.
Get in touch
To find out more about tracking down lost pensions and planning for the retirement lifestyle you dream of, please get in touch. Email info@lloydosullivan.co.uk or call 020 8941 9779 to see how we can assist you.
Please note
This article is for general information only and does not constitute advice. The information is aimed at retail clients only.
Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.
A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance.
The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.
Workplace pensions are regulated by The Pension Regulator.
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